Sweden’s net trade increased tenfold in May compared to a year ago, according to recent figures from Statistics Sweden.
Billion doll ice
Export earnings are important for the country’s economy. But a little-known industry that accounts for a large part of Swedish exports is the pharmaceutical industry.
It tells Frida Lundmark who is an expert on LIF, the research pharmaceutical companies.
– It still looks very bright. The export of pharmaceuticals grew by 29 percent during the month of April compared to the corresponding month in 2023. This shows that pharmaceuticals are an important part of the Swedish economy and account for a significant part of our export revenue, she says to News24.
Sweden at the forefront
There is a global demand for medicines and Sweden is a country that both conducts reliable internationally competitive research and manufactures advanced medicines.
The recession of recent years has been tough for many industries and in many countries.
Not affected by the recession
But the demand for medicines is relatively constant, and the desire for new revolutionary medicines is great. This can be seen not least in the success story Novo Nordisk in our neighboring country Denmark, which has been one of the big talking points internationally when it comes to companies with super growth during the recession.
– In general, it can be said that the pharmaceutical industry is a cyclically stable industry with stable demand. In times of crisis and anxiety, medicines fall into the category of safe havens. You still need your medicines even in times of crisis, says Frida Lundmark.
Good for your savings
Sweden’s pharmaceutical industry is also one of the fastest growing on the Stockholm Stock Exchange.
Of the Swedish stock market indices that are measured, health care ends up in joint second place with Daily goods, both of which have grown 12.8 percent in market capitalization in 6 months. In first place are medium-sized companies, which include several pharmaceutical companies.
But on an annual basis, the development for the health care index is significantly higher – 17.09 percent compared to 9.38 percent for the daily goods.
“No self-playing piano”
– We have very good conditions for continued research. But it’s not a self-playing piano. There is a need for continued government focus on research and innovation, and continued support for small and medium-sized companies, says Frida Lundmark.
The pharmaceutical industry is an ecosystem of companies, academia and healthcare that all need a favorable research environment.
AI twists the competition a few turns
– Sweden is a talented country. But international competition is razor sharp and it only gets tougher with the development of AI, she says.
AI is revolutionizing the world of research both in Sweden and abroad. Instead of doing tests physically, one by one, artificially intelligent research robots can perform dozens, hundreds or thousands of tests at the same time – and more cheaply.
– Sweden is good at both AI and pharmaceutical research. But that doesn’t mean we can lean back on old merits. We have to be on our toes all the time, says Frida Lundmark.
The Dane: A role model
A country that has really moved forward is Denmark and Novo Nordisk, which was mentioned earlier in the article.
– For the pharmaceutical companies in Denmark, it is clear that the Danish state has had a strategic ambition to make the country a successful country for medical research and development, says Frida Lundmark.
In Denmark, the number of clinical trials has steadily increased over the past ten years.
“Sweden has had a declining trend”
At the same time, Sweden has decreased in attractiveness for large pharmaceutical companies to perform clinical trials.
– Clinical trials are the last step in pharmaceutical research before the medicine reaches the market, and the trials give patients early access to the medicine. Denmark has made enormous strides there, while Sweden has had a declining trend, says Frida Lundmark.
Now she is asking for a continued political focus on life science and further investments in the life science area in Sweden.
– To continue the success story that is Swedish medicine export and development, concludes Frida Lundmark.
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